The Rail, Tram and Bus Union (RTBU) says that from next Wednesday Opal readers and gates will be deactivated, "following the NSW government's continued refusal to deliver safe train and fair wages and conditions for workers".
RTBU NSW Secretary, Alex Claassens said the strategic move would simultaneously cause financial pain for the government while benefiting commuters "who have unfortunately had to bear much of the brunt of the NSW government's continued pigheadedness on this issue".
"It's good news for commuters and will hopefully force the NSW government to reconsider its current strategy of stalling negotiations and picking public fights," Mr Claassens said on Wednesday.
The union says commuters cannot be fined if there is no way for them to tap on, and the action will be coupled with a ban on issuing penalty notices.
Station gates were left open throughout August, however commuters were still able to make payments.
"We need to make sure that all gates get switched off and stay off," the union said in a message on its website addressed to members.
Other actions beginning on September 21 include bans on wearing lanyards or name badges, station announcements on Opal issues and online training.
The dispute returned to the Fair Work Commission on Wednesday, following a hearing on Friday and attempted conciliation on Monday and Tuesday.
Premier Dominic Perrottet threatened to terminate a proposed enterprise agreement at the end of August, following a month of targeted industrial action that sparked widespread disruption across several days.
Mr Perrottet declared negotiations were over but the unions rejected the government's offer and applied to the commission to continue bargaining.
Ingmar Taylor SC, on behalf of all but one of the unions, argued the government breached good faith bargaining by not clearly identifying decision makers in negotiations on Wednesday.
NSW TrainLink transformation director Jasmin Streimer, the lead negotiator for the agency in bargaining since May 2021, told the hearing its chief operating officer Dale Merrick was the decision maker.
Mr Taylor asked why the unions were told negotiations were over in a letter signed by chief executive Peter Allaway instead.
"It's not a purely lateral hierarchy," Ms Streimer said.
The government's expenditure review committee (ERC) also played a role.
Ms Streimer received advice that some of the union requests the train agencies supported would not be approved as they fell outside the government's bargaining parameters.
Mr Taylor argued the ERC was the ultimate decision maker then, if it had the power to stop agreements between the bargaining parties.
Ms Streimer agreed it was the decision maker for some items but not all of them.
The ERC was also the decision maker on a back-pay offer.
The union is seeking a 3.5 per cent annual wage rise - above the three per cent NSW government cap it argues does not apply to them - with an additional cost of living supplement based on a Queensland government model.